Zee Telefilms demerges into 3 firms

December 14, 2006 08:36 IST

Zee Telefilms Ltd has formally demerged the company into three entities effective December 18, after it received Bombay high court approval for the split.

The Subhash Chandra-promoted company demerged its cable distribution subsidiary into Wire & Wireless India Ltd and its regional and news broadcasting undertaking into Zee News Ltd. The company is also demerging its direct consumer business undertaking, ZTL said in a release in Mumbai on Wednesday.

Shareholders of ZTL would receive 45 shares of ZNL and 50 shares of WWIL for every 100 shares they hold in ZTL. Both companies would be listed independently, after relevant approvals from the stock exchange, Zee said. The listing is likely to take place in January 2007, it said.

However, ZTL would commence trading as the demerged entity from December 18, but under a new name Zee Entertainment Enterprises Ltd.

The company had earlier announced the book closure date from December 24 to 28, 2006, for determining eligibility for issuance of equity shares of demerged entities ZNL and WWIL.

The demerged ZTL (including the direct consumer business undertaking) would continue to trade on the stock exchanges. The company will announce a separate record date for the demerger of its direct consumer business into ASC Enterprises, which will be renamed as Dish TV India.

"In keeping with its philosophy of building long-term shareholder value, the board of Zee had decided to restructure its various businesses. This would strengthen long-term business prospects of each individual business, by providing focused management attention," ZTL chairman Subhash Chandra said.

The business of ZEEL includes the global broadcasting business of ZTL, excluding the news and regional language channels.